The following is a discussion of our financial condition at March 31, 2023 and
December 31, 2022 and our results of operations for the three months ended
March 31, 2023 and December 31, 2022 and the three months ended March 31, 2023
and 2022, and should be read in conjunction with our audited consolidated
financial statements set forth in our Annual Report on Form 10-K for the year
ended December 31, 2022 that was filed with the SEC on February 22, 2023 (our
"Annual Report") and with the accompanying Notes to Unaudited Consolidated
Financial Statements set forth in this Quarterly Report on Form 10-Q for the
quarterly period ended March 31, 2023 (this "Report"). Because we conduct all of
our material business operations through our bank subsidiary, Luther Burbank
Savings (the "Bank"), the discussion and analysis relates to activities
primarily conducted by the Bank.
Overview
We are a bank holding company headquartered in Santa Rosa, California, and the
parent company of Luther Burbank Savings, a California-chartered commercial bank
with $8.3 billion in assets at March 31, 2023. Our principal business is
providing high-value, relationship-based banking products and services to our
customers, which include real estate investors, professionals, entrepreneurs,
depositors and commercial businesses. We generate most of our revenue from
interest on loans and investments. Our primary source of funding for our loans
is retail deposits and we place secondary reliance on wholesale funding,
primarily borrowings from the Federal Home Loan Bank ("FHLB") and brokered
deposits. Our largest expenses are interest on deposits and borrowings along
with salaries and related employee benefits. Our principal lending products are
real estate secured loans, consisting primarily of multifamily residential
properties and jumbo single family residential properties on the West Coast.
Selected Financial Data
The following table sets forth the Company's selected historical consolidated
financial data for the periods and as of the dates indicated. You should read
this information together with the Company's audited consolidated financial
statements included in our Annual Report and the unaudited consolidated
financial statements and related notes included elsewhere in this Report. The
selected historical consolidated financial data as of and for the three months
March 31, 2023 and 2022 are derived from our unaudited consolidated financial
statements, which are included elsewhere in this Report. The selected historical
consolidated financial data for the three months ended December 31, 2022 are
derived from our unaudited consolidated financial statements which are included
in our previously filed Form 8-K on January 24, 2023 as Exhibit 99.1. The
Company's historical results for any prior period are not necessarily indicative
of future performance.
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